Turnbull backed into corner over banking sector probe
A WEAKENED Malcolm Turnbull faces a new, damaging inside attack – this time on penalty rates – after he was forced into a “regrettable” year-long Royal Commission on banking misconduct that he argued against just days ago.
As the Prime Minister and the Treasurer yesterday begrudgingly announced a banking blowtorch would report to the Government in the lead-up to the next election, Labor tacticians war-gamed plans to hijack a Government Bill in a bid to undo penalty rates and entice rogue MP George Christensen to cross the floor.
Highly placed sources said the Government was aware of Labor’s tactics and feared it would again be held hostage by some of those emboldened in the Nationals Party “with pet issues”.
The $75 million, broadranging Royal Commission will probe banking, superannuation and financial service advisers and provide an interim report to the Government by September next year and with a final reporting date of February 1, 2019.
Banks, which wrote to the Government yesterday to ask the executive to take control of the inquiry and ease uncertainty in the sector, took a hit on the sharemarket yesterday after the announcement.
Ironically after the SOS, Australian Bankers’ Association chief executive Anna Bligh warned families could face interest rate rises because offshore lenders would likely price-in risk. The ostensible urging from the banks gave Mr Turnbull some political cover needed for his backflip, but it was clear the Government capitulated to three Queensland Nationals – Queensland Senator Barry O’Sullivan, Wide Bay MP Llew O’Brien and Mr Christensen – threatening to pull the trigger on a Private Member’s Bill to set up a probe.